Match List - I with List - II and select the correct answer using the code given below :List - I (Duties of partners) List - II (Relevant section under the Indian Partnership Act) (a) Duty of absolute good faith (i) Section 16 (b) (b) Duty not to compete (ii) Sections 12 (b) and 13 (f) (c) Duty of due deligence (iii) Section 10 (d) Duty to indemnify for fraud (iv) Section 9
Indian Partnership Act: Matching Partner Duties to Sections
This solution provides the correct matching between the duties of partners (List - I) and the relevant sections of the Indian Partnership Act, 1932 (List - II).
Matching Partner Duties with Sections
- (a) Duty of absolute good faith corresponds to (iv) Section 9.
- (b) Duty not to compete is addressed by (i) Section 16.
- (c) Duty of due diligence (acting for the common advantage) aligns with (ii) Sections 12 (b) and 13 (f).
- (d) Duty to indemnify for fraud is covered under (iii) Section 10.
Explanation of Sections
Section 9 outlines the general duties of partners, including the duty to act with utmost good faith.
Section 16 deals with the accountability of partners for profits earned from competing businesses or the misuse of firm property.
Sections 12(b) (carrying on business to the greatest common advantage) and related provisions imply the duty of diligence and care in managing the partnership business.
Section 10 specifically makes partners liable to indemnify the firm for any loss occasioned by their fraud.
Correct Answer Derivation
Based on the established matches:
- (a) matches with (iv)
- (b) matches with (i)
- (c) matches with (ii)
- (d) matches with (iii)
The correct code representing this matching is (a)-(iv), (b)-(i), (c)-(ii), (d)-(iii).
Important Questions from Partnership Act, 1932
- Which of the following is correct?
The important provision affecting partnership accounting, in the absence of a partnership deed is: As per Section 6 of the Indian Partnership Act, 1932, in determining whether a group of persons is or is not a firm, regard shall be had to which of the following?
- Atul, Bharat, and Chetan enter into a partnership. Atul invests $₹25,000$ for 6 months, Bharat invests $₹30,000$ for 8 months, and Chetan invests $₹40,000$ for 9 months. If the total profit is $₹37,000$, what is Chetan's share of the profit?
- According to Section 12 of the Partnership Act, any difference arising as to ordinary matters connected with the business of partnership may be decided by
Match List - I with List - II and select the correct answer using the code given below :
List - I List - II (a) Partnership not created by status (i) CST v. K. Kelukutty (b) Essentials of partnership (ii) Kshetra Mohan v. Commr. of Excess Profit Tax (c) Joint Hindu Family and partnership (iii) Rakesh Kumar Dinesh Kumar v. U.G. Hotels and Resorts Ltd. (d) Partnership between outsiders and joint family (iv) Ganpat v. Annaji
